Bill Gross Investment Outlook (Business Insider and Barron’s)

Outlook: Investors would need Xanax to deal with the markets this year (2016)

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Bill Gross formerly worked for PIMCO and then transferred to Janus Capital in 2015. William Hunt “Bill” Gross (born April 13, 1944) is an American financial manager and author. He co-founded Pacific Investment Management (PIMCO). Gross also ran PIMCO’s $270.0 billion Total Return Fund (PTTRX; Wiki).

Pacific Investment Management Company, LLC (commonly called PIMCO), is a global investment management firm headquartered in Newport Beach, California, with over 2,000 employees working in 13 offices across 12 countries, and $1.52 trillion in assets under management as of 30 June 2015. The company provides mutual funds and other portfolio management and asset allocation solutions for millions of investors worldwide (Wiki).

As of June 30, 2014, Janus managed approximately $177.7 billion in assets under management for more than four million shareholders, clients, and institutions around the globe. Outside the U.S., Janus has offices in London, Milan, Tokyo, Hong Kong, Melbourne, and Singapore (Wiki).

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Business Insider Highlights:

Meanwhile, manipulate (sic) prices of interest rates and stocks to benefit corporations and the wealthy while they feast on exorbitantly priced gluten-free pasta and range-free chicken at Whole Foods, or if even more fortunate, pursue high rise New York condos and private jets at Teterboro. It’s a wonderful life for the 1% and a Xanax existence for the 99. But who’s looking – or counting – even at the ballot box. November 2016 will not change a thing – 8 years of Hillary or 8 years of a non-Hillary. Same difference. Central bankers, Superpacs, and K street lobbyists are in control. Instead of cake, the 49.5% (males) will just have to chomp on their Carl’s Jr. hamburger and dream of a night with 23-year-old Kate Upton lookalikes that show them how to eat it during Super Bowl commercials. And if that’s too sexist, then Carl’s is substituting six-pack hunks instead of full-breasted models to appease the other 49.5% (females). It’s a Xanax society. We love it.

Demographics may not rule absolutely, but they likely will dominate investment markets and returns for the next few decades until the Boomer phenomena fades away. The 1% – in addition to the 99 – will need extra doses of Xanax, or additional slices of cake, to cope in the next few decades. Let the games begin.

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Barron’s

Gross suggested for investors to be ‘long inflation and short fixed coupons. U.S. 10-year TIPS at 80 basis points seem like a good hedge in that regard. And of course in terms of specific equity sectors, health care should thrive, while liability handcuffed financial corporations such as insurance companies as well as the bonds of underfunded cities and states such as Chicago and Illinois, should not.’